Slide 1: Boise Cascade Company Second Quarter 2019 Earnings Webcast
Boise Cascade Company Second Quarter 2019 Earnings Webcast August 5, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements u This presentation includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements is subject to a nu
Slide 3: Executive Summary
Executive Summary u 2Q19 sales were $1.2 billion, down 13% from 2Q18. u 2Q19 net income was $27.7 million, or $0.71 per share, down from $1.06 per share in 2Q18. Prior year results included $9.0 million of net after-tax losses, or $0.23 per share, from non-cash pension settlement charges. u 2Q19 hou
Slide 4: 2Q 2019 Financial Highlights
2Q 2019 Financial Highlights Sales Adjusted EBITDA - (13)% - (25)% $1,408.1 $85.8 $1,230.1 $64.5 52.2 1,213.8 $ Millions $ Millions 1,097.4 38.8 55.9 33.0 334.3 425.5 (7.3) (201.6) (22.3) (231.1) 2Q 2019 2Q 2018 2Q 2019 2Q 2018 n BMD n Wood n Eliminations & Other n BMD n Wood Corporate August 5, 201
Slide 5: Wood Products EWP
Wood Products EWP LVL I-joists (mmcf) (mmelf) 6.0 70 68 63 60 61 5.0 4.8 4.8 4.6 4.5 60 4.3 52 4.0 3.6 50 45 3.0 40 2.0 30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ($/cf) ($/melf) $20 18.87 18.70 18.33 18.73 $1,300 1,266 1,279 1,261 18.25 $18 17.30 1,220 1,213 $1,200 1,179 $16 $1,100 $14 $1,000 $12 $900 $10 $800 1Q
Slide 6: Wood Products Plywood
Wood Products Plywood Sales Volume Net Sales Price (mmsf 3/8" basis) ($/msf 3/8" basis) 450 $400 379 356 357 400 369 $350 368 360 336 343 306 350 326 $300 287 272 300 $250 250 $200 200 $150 150 100 $100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2018 2019 August 5, 2019 6
Slide 7: Building Materials Distribution Sales
Building Materials Distribution Sales ($ Millions) (% of Sales) $1,400 100 1,214 19 18 19 19 20 20 $1,200 1,159 1,097 80 992 $1,000 922 908 32 32 33 35 36 60 39 $800 $600 40 $400 49 50 48 46 20 44 41 $200 $0 0 1Q 2Q 3Q 4Q 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 2018 2019 Commodity General Line EWP August 5, 2
Slide 8: Working Capital
Working Capital ($ Millions) 6/30/2019 3/31/2019 Change Receivables $ 328.7 $ 303.8 $ 24.9 Inventory 524.5 573.9 (49.4) Other current assets (a) 15.1 11.5 3.6 868.3 889.2 (20.9) Accounts payable 275.2 286.4 (11.2) Accrued liabilities (b) 142.2 118.7 23.5 417.4 405.1 12.3 Net working capital $ 450.9
Slide 9: Debt and Liquidity Highlights
Debt and Liquidity Highlights ($ Millions) 6/30/2019 3/31/2019 Net Debt Total debt $ 440.0 $ 439.7 Cash & cash equivalents (202.4) (136.2) Net debt $ 237.6 $ 303.5 Liquidity Position Bank line excess availability $ 365.4 $ 365.4 Cash & cash equivalents 202.4 136.2 Total liquidity $ 567.8 $ 501.6 Aug
Slide 10: Outlook
Outlook u Current consensus estimate for 2019 U.S. housing starts is 1.24 million, which is slightly below 2018 levels. u Pace of housing recovery being constrained by a number of factors, including affordability and construction labor availability. Consensus forecast for 2020 housing starts is 1.27
Slide 11: Appendix
joise Cascade @~=— 4 ae = aes ti a Appendix August 5, 2019
Slide 12: Appendix: Net Income to EBITDA Reconciliation
Appendix EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. The following table reconcile
Slide 13: Appendix: Segment Income to EBITDA Reconciliation
Appendix The following table reconciles segment income to EBITDA for the three months ended June 30, 2019 and 2018, and March 31, 2019: Three Months Ended ($ Millions) 2Q19 2Q18 1Q19 Wood Products Segment income $ 18.9 $ 36.5 $ 11.6 Depreciation and amortization 14.1 19.5 13.7 Segment EBITDA $ 33.0
Slide 14: Appendix: 2018 Transactions
Appendix 2018 Transactions u 2Q 2018 Ø $12.0 million of pre-tax pension settlement charges, or $0.23 per share after-tax, due to pension risk transfer transaction. u 3Q 2018 Ø $11.0 million of pre-tax impairment and sale related losses, or $0.21 per share after-tax, related to the sale of three Wood